Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Purchased used heavy-duty dump truck with plow for snow plowing from PP Equipment for $20,000, $500 down payment, 5%, 5-year note for remaining balance. Calculate
Purchased used heavy-duty dump truck with plow for snow plowing from PP Equipment for $20,000, $500 down payment, 5%, 5-year note for remaining balance. Calculate monthly payment using PMT function in Excel and prepare amortization schedule. --- I started an excel file but it's not coming out. Any help would be appreciated!
Truck with Snow Plow Excel Function Present Value (lump sum) Future Value (lump sum) Annuity Amount (periodic payment) Type of Annuity (0 = Ordinary; 1 = Annuity Due) Annual Interest Rate # of Years # of Compounding Periods or Payments per Year PMT 19,500.00 ($367.99) 0 5.00% 5.00 12 Truck with Snow Plow Amortization Schedule Year 1 2 3 4 5 Beginning Balance 19,500.00 20,107.01 20,744.37 21,413.60 22,116.29 Totals Payment $367.99 $367.99 $367.99 $367.99 $367.99 1,839.95 Interest 975.00 1,005.35 1,037.22 1,070.68 1,105.81 5,194.06 Principal Reduction ($607.01) ($637.36) ($669.23) ($702.69) ($737.83) (3,354.12) Ending Balance 20,107.01 20,744.37 21,413.60 22,116.29 22,854.12Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started